BLOOMINGTON, Minn., December 11, 2003 — Pearson VUE, the electronic testing business of Pearson Education, today announced that it has been selected as the prime contractor of a seven-year, $200 million contract with the Graduate Management Admission Council® (GMAC®) to develop and administer the GMAT® exam worldwide. Beginning in January 2006, GMAT® exams will be available at 410 Pearson VUE test centers in 96 countries.

ACT was selected by GMAC® to be responsible for item development, test development, essay scoring, and research and development activities in support of the GMAT®. In addition to its own testing programs, which include the ACT Assessment, administered more than two million times each year, ACT provides test development services to over 50 professional organizations for use in graduate programs admissions decisions as well as for licensure and certification.

The GMAC® is a not-for-profit educational association composed of leading business schools from around the world committed to creating access to graduate business education. Currently used or required by over 1,700 graduate business programs for admission, the GMAT® exam is the most widely used assessment – and most reliable predictor – of a candidate’s ability to succeed academically in graduate business studies.

“The Council’s new partnership for delivery of the GMAT® will not change the validity, reliability, security, or comparability of the test. The GMAT® will remain the international gold-standard assessment tool for management education,” said David A. Wilson, president and CEO of the Graduate Management Admission Council®. “This partnership will allow us to better serve the graduate management education community in the future by increasing global reach, advancing security measures, and providing flexible access to test information.”

“Beginning in 2006, the GMAT® will be more accessible, with additional testing sites internationally and online registration worldwide. The Council looks forward to meeting the needs of our constituents through our new vendor relationship that will provide the reach, technology, and security that people associate with the GMAT®,” said Robert J. Swieringa, dean of Cornell University’s Johnson School and chair of the GMAC® board.

As part of the contractual agreement, Pearson VUE will expand its network of Pearson Professional Centers to include locations in major markets throughout the world. “We’re excited to have been selected by the GMAC® to deliver this prestigious exam,” said Bob Whelan, vice president and general manager of Pearson VUE. “The consistency and control offered by our network is tailor-made for the needs of the high stakes admissions testing market.”

Pearson VUE (www.pearsonvue.com) is the electronic testing business of Pearson Education, which in turn is part of Pearson (NYSE: PSO; LSE: PSON), the international media company. Pearson’s primary operations also include the Financial Times Group and the Penguin Group.